As a reminder for employers in Chicago, Illinois, several important labor law updates will take effect on July 1, 2025:

Minimum Wage

• $16.60/hour for employers with 4 or more employees
• $12.62/hour for tipped workers (increasing annually until equal to standard wage by 2028)
• $16.50/hour for youth workers and those in subsidized employment programs

Paid Leave & Sick Leave: Applies to employees working 80+ hours in any 120-day period:

• Paid Leave: 1 hour per 35 hours worked (up to 40 hours/year); usable after 90 days; carryover up to 16 hours.

• Paid Sick Leave: 1 hour per 35 hours worked (up to 40 hours/year); usable after 30 days; carryover up to 80 hours.

Fair Workweek Ordinance: Applies to employees who:

• Work in covered industries (e.g., healthcare, retail, hospitality)
• Earn ≤ $32.60/hour or ≤ $62,561.90/year.
• Work for employers with 100+ employees globally (or 250+ employees and 30+ locations for restaurants)

Employers must provide predictable schedules and compensation for last-minute changes.

Posting Requirements: Employers must display notices for:

• Minimum Wage
• Paid Leave and Sick Leave
• Fair Workweek
• Notices are available in 13 languages

With the first paycheck issued to a Covered Employee, and annually with a paycheck issued within 30 days of July 1st, every employer must provide a notice advising the Covered Employee of

• Current minimum wage
• Fair Workweek (if applicable)
• Paid Leave and Paid Sick Leave

For additional information:

• Chicago Fair Workweek Press Release – New Wage Rates Announced
• Chicago Fair Workweek Resources

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